Trading MACD Histogram Area with Reversible Signals and Risk-Based Sizing

Summary

This expert advisor uses an unconventional MACD approach: it calculates the area of the indicator above and below its zero line over a user-selected number of bars. A reverse-signal option determines whether the resulting signal opens a buy or sell position. The document lists configurable MACD averaging periods and price type, along with stop loss, take profit, trailing stop, and trailing step settings.

Position size can be entered manually or calculated dynamically from a risk setting; the description presents constant and dynamic sizing as alternatives. These controls allow the user to alter both signal construction and trade management, but the page does not specify the exact rule that maps the calculated area to an entry, nor does it state exit logic beyond the listed stop and trailing settings. It offers no backtest results, markets, performance measures, or evidence that this area-based variant is effective, so its strategy description is incomplete for independent evaluation.

Key ideas

• The EA measures MACD area above and below zero over a selected lookback.
• A reverse-signal option switches whether the signal opens a buy or sell position.
• Users can configure MACD periods, price type, stop loss, take profit, and trailing controls.
• Position size may be fixed manually or calculated dynamically from a risk input.
• The document provides no precise signal formula or performance evidence.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.